The Australian currency was marginally higher today, trading in a tight range as traders wait for the US Federal Reserve's next ruling on monetary policy.

At midday east-coast time, the local unit was trading at 91.71 US cents, slightly higher than Friday's close of 91.7 US cents. It was buying 78.34 yen, 69.04 euro cents and 57.42 pence.

Since 7am, the Australian dollar ranged from 91.69 to 91.92 US cents.

According to Commonwealth Bank currency strategist Joseph Capurso, the dollar was trading in a tight range.

''The housing finance data didn't really push the Aussie down all that much.

''I think the market is mainly waiting for the US Federal Reserve decision later in the week.

''I think between now and then it's going to be pretty quiet trading.''

The US Federal Reserve will hold a meeting on Tuesday night, Australian time.

With interest rates at virtually zero per cent, analysts predict the Fed will directly pump stimulus into the economy again, as it did at the peak of the credit crunch.

Mr Capurso said the forecast decision from the US central bank could boost the Australian currency in the short term.

''The Aussie might go up between 93 and 94 (US cents), but I think eventually a weaker than expected US economy will be bad for the Aussie dollar, but you probably won't see that movement down for a few weeks after,'' he said.